SPY 5/18/2022

Target (TGT) announced earnings yesterday 5/18/22 and that provided the pretext for a powerful 4% sell off that ended a pullback from a trend that began back in April.  The reason the market reacted so strongly is that investors are concerned that inflation is starting to change consumer behavior – and if that is the case, then layoffs and recession are very real possibilities and not very far behind for the greater economy soon.

It’s a scary time for the economy in general, but investors in the High Sharpe and Quantum Return Funds have generally not had to experience much of that pain.

These portfolios are engineered to harvest edge from the markets at reduced volatility – and they do it very well.

The results speak for themselves.  While past performance is no indication of future performance – it is an indication that things are working as designed.

1/3/22 – 5/18/22 the SPY was down -19.35%.

High Sharpe Performance over this period was +.65%.  That’s beating the market by 20%!  Fully 90% of active managers can’t even meet their benchmarks, much less beat them according to this research

The Quantum Return Fund also beat the market considerably.  It was down only -6.28% – a beat of 13%!

Does this represent a major buying opportunity?  According to the strategies it is only a moderate one.  The portfolios will indeed be buying on 5/19/22 – but there will be room to buy more if the market drops lower on subsequent days.